* Investigators looking into how a government funding decision got to investors early are struggling over how to distinguish between illegal insider tips and accurate predictions based on research and analysis.

* The U.S. and Afghanistan said they ironed out the final disputes over the agreement on long-term American presence, just hours before the Loya Jirga assembly was convening to consider the deal.

* Federal Reserve officials, mindful of a still-fragile economy, are laboring to devise a strategy to avoid another round of market turmoil when they pull back on one of their signature easy-money programs in the months ahead.

* A complex bet in the foreign-exchange market backfired on Goldman Sachs Group Inc during the third quarter, contributing to a revenue slump that prompted senior executives to defend the firm's trading strategy.

* Blackstone Group is about to unleash a seasoned turnaround specialist on some of the private equity giant's 77 companies.

* A complex bet in the foreign exchange market backfired on Goldman Sachs during the third quarter, contributing to a revenue slump that prompted senior executives to defend the firm's trading strategy.

* A preliminary gauge of China's manufacturing activity showed a mild weakening of growth momentum in November, weighed down by sluggish new export orders, and suggesting the third-quarter rebound in the world's second-largest economy may be losing steam.

* The White House won't support plans to recapitalize Fannie Mae and Freddie Mac because they don't address core concerns over having two large entities dominate the nation's $10 trillion mortgage market, said the president's top economic adviser.

* One morning this month, agents from the Federal Bureau of Investigation showed up unannounced at the home of a New York-based currencies trader for Deutsche Bank AG.

The agents showed him transcripts of an electronic chat in which the trader appeared to boast about trying to manipulate foreign exchange markets, according to people familiar with the incident.

FT

Chancellor George Osborne pressed Brussels last year to spare the Co-operative Bank from tougher rules applied to big listed banks.

France's socialist government has promised reforms in the country's onerous tax system but has stopped short of pledging tax cuts.

Shale gas fracking is unlikely to succeed in Europe because the continent lacks the right mix of land rights and infrastructure, according to the head of trading at power company Eon .

Authorities in France have placed the French unit of Swedish furniture retailer Ikea and its two top executives under formal investigation over allegations of illegally gathering data on employees and clients.

Coal miner Bumi's plan to overhaul its ownership end boardroom conflicts hit a hurdle after the company's chairman missed a deadline to show he had lined up financing for a key part of the restructuring deal.

Private equity firm KKR & Co LP has taken control of Winoa in a debt restructuring deal after the French steel abrasives maker's previous private equity owner refused to inject cash.

NYT

* The Federal Reserve Open Market Committee wrestled at its most recent meeting with ways of supporting an economy that still needs help.

* Shareholders are putting AT&T and Verizon Wireless on notice: Tell the public more about the companies' role in government surveillance efforts or risk a ding to the bottom line.

* State insurance commissioners met with President Obama and said insurers and states would have to decide to extend non-compliant health plans for one more year.

* Opposing portrayals of Michael Steinberg, a former trader at SAC Capital Advisors, emerged during opening statements at his criminal insider trading trial in Federal District Court.

* Rupert Murdoch, chairman of News Corporation and 21st Century Fox, and Wendi Deng Murdoch agreed to end their 14-year marriage.

* Neil MacBride, the former U.S. attorney in Alexandria, Virginia, will join Davis Polk & Wardwell as a partner, the firm will announce on Thursday.

* The Tribune Company, owner of The Chicago Tribune and The Los Angeles Times, will lay off 700 employees at those newspapers and the six others it owns, it said in memos to the staff on Wednesday.

* An ambitious plan to revise the system for taxing multinational corporations, released on Tuesday by the Senate Finance Committee chairman, Max Baucus, would hit technology companies and large pharmaceutical companies especially hard.

* A measure of consumer spending rose more than expected in October as households bought a range of goods, suggesting positive momentum in the economy early in the fourth quarter.

* The New York Times on Wednesday announced a reorganization of its Washington bureau, including the elevation of Carolyn Ryan to bureau chief and the start of two new ventures.

Canada

THE GLOBE AND MAIL

* The Royal Canadian Mounted Police is alleging that Nigel Wright, Canadian Prime Minister Stephen Harper's former chief of staff, breached the Criminal Code for his part in an extensive Conservative operation to contain the Senate expenses scandal.

* The British Columbia government has announced a new action plan for patients with mental-health challenges, a response to a declaration by Vancouver's mayor and police chief that the city faces a crisis in handling people with severe, untreated mental illness.

Reports in the business section:

* Suncor Energy Inc, which last month approved a new multi-billion-dollar oil sands mine, plans to spend over $1 billion more in 2014 than it expects in 2013.

* Cliffs Natural Resources Inc announced on Wednesday that it would stop developing the Ring of Fire mineral deposit in Northern Ontario, dealing a blow to the provincial government's plans to tap the resource-rich area and grow the local economy.

NATIONAL POST

* Toronto Mayor Rob Ford's new, smaller office will have nine members in it, his fifth chief of staff in three years confirmed Wednesday. The office does not include David Price, his former director of logistics and operations and friend of Doug Ford who has had a controversial run at city hall.

* The Canadian prime minister's senior staff worked with top Tory senators to whitewash a Senate report into Mike Duffy's contested expenses after unsuccessfully trying to shape an independent audit, new Royal Canadian Mounted Police documents allege.

FINANCIAL POST

* Alberta pocketed just $26 million in its biggest land auction in two years, diffusing hype that a forgotten corner of the province holds the next big oil and gas play.

* The long-delayed rotation away from a reliance on consumer spending as Canada's economic engine to stronger exports and business investment just isn't happening - much to the chagrin of Stephen Poloz, the Bank of Canada governor who previously ran Export Development Canada.

China

CHINA SECURITIES JOURNAL

- The timely introduction of crude oil futures will boost China's capital market liberalization, said a commentary in the paper.

SECURITIES TIMES

- China's State Council plans to consolidate the registration of all immovable property under one department to ease the bureaucratic burden for enterprises, said Li Keqiang, the country's premier at a meeting on Wednesday. Currently, registration of immovable property is overseen by many different departments.

SHANGHAI SECURITIES NEWS

- China's National Development and Reform Commission plans to introduce ecological conservation indicators to better assess the interplay of economic development and damage to the environment, said Xu Shaoshi, director of the commission, recently. Relevant government departments will be instructed.

CHINA DAILY

- China appointed spokesmen for its seven military branches on Wednesday to increase operational transparency. The spokesmen are mainly drawn from the public relations departments in related branches and will release information about key activities and respond to public concerns, said sources with knowledge of the matter.

PEOPLE'S DAILY

- If tangible benefits are not felt by Chinese people and if a more equitable social environment is not created, then reform will lose its significance, said a commentary in the paper which acts as the party's mouthpiece.

Fly On The Wall 7:00 AM Market Snapshot

ANALYST RESEARCH

Upgrades

Advance Auto Parts (AAP) upgraded to Outperform from Neutral at Credit SuisseBreitBurn Energy (BBEP) upgraded to Outperform from Neutral at RW BairdCrestwood Midstream (CMLP) upgraded to Outperform from Neutral at RW BairdGreen Mountain (GMCR) upgraded to Buy from Neutral at Janney CapitalHillshire Brands (HSH) upgraded to Outperform from Market Perform at BMO CapitalLeap Wireless (LEAP) upgraded to Hold from Sell at Deutsche BankMechel (MTL) upgraded to Buy from Sell at CitigroupPlains All American (PAA) upgraded to Outperform from Neutral at RW BairdRayonier (RYN) upgraded to Hold from Sell at Deutsche BankSummit Midstream (SMLP) upgraded to Outperform from Neutral at RW BairdWestar Energy (WR) upgraded to Buy from Neutral at UBS

Downgrades

Allianz SE (AZSEY) downgraded to Neutral from Buy at CitigroupAmicus Therapeutics (FOLD) downgraded to Neutral from Buy at Janney CapitalAmicus Therapeutics (FOLD) downgraded to Neutral from Overweight at JPMorganConsolidated Edison (ED) downgraded to Underperform from Hold at JefferiesJ.M. Smucker (SJM) downgraded to Neutral from Overweight at JPMorganPhilip Morris (PM) downgraded to Neutral from Conviction Buy at GoldmanPioneer Natural (PXD) downgraded to Perform from Outperform at OppenheimerQualcomm (QCOM) downgraded to Outperform from Strong Buy at Raymond JamesQuintiles (Q) downgraded to Hold from Buy at Deutsche BankRepublic Services (RSG) downgraded to Neutral from Buy at Goldman

Initiations

Agrium (AGU) initiated with an Outperform at Raymond JamesAllscripts (MDRX) initiated with a Buy at Deutsche BankAmerisourceBergen (ABC) initiated with a Hold at Deutsche Bankathenahealth (ATHN) initiated with a Buy at Deutsche BankCVS Caremark (CVS) initiated with a Hold at Deutsche BankCardinal Health (CAH) initiated with a Hold at Deutsche BankCatamaran (CTRX) initiated with a Hold at Deutsche BankCerner (CERN) initiated with a Buy at Deutsche BankCharles River Labs (CRL) initiated with a Hold at Deutsche BankCheck Point (CHKP) initiated with an Overweight at BarclaysComputer Programs (CPSI) initiated with a Hold at Deutsche BankCovance (CVD) initiated with a Hold at Deutsche BankEverBank Financial (EVER) initiated with an Overweight at BarclaysExpress Scripts (ESRX) initiated with a Hold at Deutsche BankFacebook (FB) initiated with an Outperform at FBR CapitalFortinet (FTNT) initiated with an Equal Weight at BarclaysGartner (IT) initiated with a Market Perform at FBR CapitalHonda (HMC) initiated with a Buy at JefferiesImperva (IMPV) initiated with an Overweight at BarclaysLinkedIn (LNKD) initiated with a Market Perform at FBR CapitalMcKesson (MCK) initiated with a Buy at Deutsche BankMedAssets (MDAS) initiated with a Buy at Deutsche BankMedidata Solutions (MDSO) initiated with a Buy at Deutsche BankMonster Worldwide (MWW) initiated with an Outperform at FBR CapitalQuality Systems (QSII) initiated with a Sell at Deutsche BankRadware (RDWR) initiated with an Outperform at Imperial CapitalRite Aid (RAD) initiated with a Buy at Deutsche BankSorrento Therapeutics (SRNE) initiated with a Buy at CRT CapitalThomson Reuters (TRI) initiated with an Outperform at FBR CapitalWalgreens (WAG) initiated with a Buy at Deutsche Bank

Credit Suisse Group (CS) said it had begun a program to ring-fence its Swiss banking business from riskier investment banking operations in the U.S. and U.K., part of a plan to address concerns about institutions that are deemed too big to fail, the Wall Street Journal reports

China Mobile (CHL) plans to introduce a new brand for mobile services on December 18, raising expectations of an imminent start to its iPhone (AAPL) sales in the country, the Wall Street Journal reports

Janet Yellen will take an important step today toward becoming the first woman to lead the Federal Reserve, with the Senate Banking Committee expected to back the nomination and clear her path to lead the central bank, Reuters reports

U.S. regulators are considering whether to give banks more time to comply with the Volcker rule, which bans them from gambling with their own money, Reuters reports

Vodafone Group (VOD), set to receive $130B for exiting the U.S., will focus on expanding wireless networks even as potential buyers may be sizing up the company for a bid, said CEO Vittorio Colao, Bloomberg reports

Bank of America (BAC) told a judge in federal court in Manhattan it shouldn’t pay any penalty in a U.S. lawsuit accusing it of selling defective loans to Fannie Mae (FNMA) and Freddie Mac (FMCC). The government argued that the bank should pay the maximum penalty of $863M. The bank said it should pay $1.1M at the most, Bloomberg reports